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What is the present value of a stream of payments of ​$200 per year for 5 years with the first payment being received exactly 10 years from now if the interest rate is 10​%?

What is the present value of a stream of payments of ​$200 per year for 5 years with the first payment being received exactly 10 years from now if the interest rate is 10​%?
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What is the present value of a stream of payments of ​$200 per year for 5 years with the first payment being received exactly 10 years from now if the interest rate is 10​%?

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User AndrewBenjamin
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1 Answer

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PW = 200×(((1.1)^5 - 1)÷(.1(1.1)^5))×(1.1)^-9 = $321.5
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User Yoape
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